Announcement of Service Closure

Thank you for using the FIGS service since our launch. Regrettably, we have to announce that
we will be discontinuing our service as of the 14th of December 2018 due to certain constraints.
Please note that the during this period, the information shown on the FIGS platform is not up-to-date.

The long investment runway

With my first pay cheque, I experienced my first sense of financial liberation. With all this money, now I can finally do what I want. Or so I thought.

Between socialising with your friends, attending some workout classes, and your weekday lunch of around S$4-5, there seems to be scarcely enough left over to save. Of course, managing expenses may help but what is a more sustainable solution is to expand the income streams.

That’s when I started hunting for a “second income”. Where to start though? At that point in time, I attended talks held by the Singapore Exchange (SGX) to explore my options. One point that was raised, and that left a strong impression on me, was the long “runway” for investment.


Compounding over time

I am only 25 years old this year. Since I’ve only worked for one to two years, I don’t have too much saved up. But what youth offers me is a long runway to invest. This means that I can enjoy the compounding effect on my investment over 30, 40 or even 50 years.

If the stock market rises, an initial investment will also rise over time. In the past 10 years, according to the Financial Times, the S&P 500 index in US has yielded a compounded annual return of approximately 10.5% since August 2008.

Moreover if you add in the dividends you receive and then also reinvest those then the returns would have grown significantly more. In essence, this is compounding and the investment amount has the potential to keep compounding the longer the investment time frame.


Good things take time

The famed Chinese billionaire Jack Ma once said that “The very important thing you should have is patience”. History has shown us that despite major periodic crises, the major stock markets have been on an overall upward trend through the decades.

This is an important lesson for any investor whether a seasoned pro or a novice: you need to be able to wait out any potential crisis in order to reach better times.

Of course, this necessitates having a safety net so that in times of need, you can have something to draw on. Being in my early 20s, there aren’t too many commitments but neither is there abundant capital for me to invest. But the long runway for investing is still there and it is one asset that we should all remind ourselves of.


by Hui Yi Tee, English Editor @ FIGS
24 Aug 2018

(Please note that all views expressed in this article are solely my own and do not represent the opinions of FIGS or its related companies)


The information contained in the FIGS Blog is for your general information only and is not meant to constitute professional and/or financial advice. Please note that the use of the FIGS Blog is subject to the Disclaimers.

Announcement of Service Closure

Thank you for using the FIGS service since our launch. Regrettably, we have to announce that
we will be discontinuing our service as of the 14th of December 2018 due to certain constraints.
Please note that the during this period, the information shown on the FIGS platform is not up-to-date.